Kylie Jenner tweet wipes over a billion dollars off Snapchat market value

  • Kylie Jenner tweet wipes over a billion dollars off Snapchat market value

Kylie Jenner tweet wipes over a billion dollars off Snapchat market value

When the New York Stock Exchange opened on Thursday, shares of Snap Inc were trading at around $18.50, but by 3 pm they had plunged to just over $17.

By the looks of things, her followers agree - the tweet got 309,000 likes, 58,000 retweets, and 4,000 comments. With that drop, $1.5 billion worth of Snapchat market value was wiped out. Following her tweet, an instant drop of 6.1 percent was noted in the company's share.

Of course, not every investor lost out on Jenner's tweet.

The redesign of the app saw Snapchat move away from its previous split between "messages" and "stories", the social media convention invented by the company but usurped by Facebook's Instagram.

As Kylie Jenner tweeted about the new update being "so sad", the social networking major's share prices plummeted by nearly eight percent.

The Venice, California-based maker of the Snapchat photo-sharing app awarded Spiegel shares equal to 3 percent of the outstanding capital stock when the initial public offering closed in March a year ago, according to the firm's annual report filed on Thursday. In Snap's case, it has 661,834,416 shares outstanding, according to the Nasdaq.

The difference between the stock high on Wednesday and it's low on Thursday translates into a market cap loss of approximately $1.2 billion, which represents a decrease of about 10%. She has 104 million followers on Instagram. Because what is the point of an update, if people are not even opening the application anymore?

Snap's share price has been on something of a roller coaster of late.

The Kardashian-Jenner brand isn't just strong in reality television. That's also the question that put an end to Snap's financial growth.

Meanwhile, a petition on Change.org calling on Snapchat to abort the redesign has gathered more than 1.2 million signatures, signalling that folks are not quite ready to jump ship just yet.

A more direct trigger for the stock crash, though, is a stock downgrade of the company from "neutral" to "sell" by Citigroup analyst Mark May on Tuesday, following weeks of negative reviews from Snapchat users regarding the app's update.